Bill gives utilities leg up on consumers

Published: Tuesday, August 14, 2007 at 4:30 a.m.

Last Modified: Tuesday, August 14, 2007 at 12:00 a.m.

To The Editor: Our legislative delegation in Raleigh (Sen. Apodaca, Reps. Justus and Walend) just handed power companies a huge windfall that will be paid for by every consumer in the state.

Senate Bill 3, 23 pages long and written mainly by power company lobbyists, was rammed through the legislature in its closing days with our delegations' support.

In return for a promise to generate 12.5 percent of power from renewable sources 14 years from now, power companies can start charging consumers now for the cost of building pollution spewing coal plants.

This is a major shift from power companies' method of financing new plants. As private companies, they normally obtain money from investors, build and place plants in service and petition the Public Utilities Commission for a rate increase if necessary.

Under the new legislation, consumers will take the risk of building a new facility. If it never goes on line, the consumer is stuck with having built the plant. The utility has incurred no risk.

Sen. Apodaca and Reps. Justus and Walend might as well have signed up as lobbyists for the power companies in their support of this anti-consumer legislation.

<p><b>To The Editor:</b> Our legislative delegation in Raleigh (Sen. Apodaca, Reps. Justus and Walend) just handed power companies a huge windfall that will be paid for by every consumer in the state.</p><!-- Nothing to do. The paragraph has already been output --><p>Senate Bill 3, 23 pages long and written mainly by power company lobbyists, was rammed through the legislature in its closing days with our delegations' support.</p><p>In return for a promise to generate 12.5 percent of power from renewable sources 14 years from now, power companies can start charging consumers now for the cost of building pollution spewing coal plants.</p><p>This is a major shift from power companies' method of financing new plants. As private companies, they normally obtain money from investors, build and place plants in service and petition the Public Utilities Commission for a rate increase if necessary.</p><p>Under the new legislation, consumers will take the risk of building a new facility. If it never goes on line, the consumer is stuck with having built the plant. The utility has incurred no risk.</p><p>Sen. Apodaca and Reps. Justus and Walend might as well have signed up as lobbyists for the power companies in their support of this anti-consumer legislation.</p><p>Steve Franks</p><p>Hendersonville</p>